Users have already staked more than $11 billion worth of Ethereum as part of ETH 2.0’s “Phase 0” deployment.
Ethereum 2.0 is an ambitious multi-year upgrade plan that aims to switch the Ethereum blockchain from its current proof-of-work (PoW) consensus algorithm to a proof-of-stake (PoS) one. This will significantly reduce the network’s energy consumption and hardware requirements, potentially resulting in lower transaction fees (which are currently skyrocketing) and higher throughput.
Currently, ETH 2.0 is in the first stage of deployment, dubbed “Phase 0.” To initially launch it at the end of 2020, the network required over 16,000 validators—users running the software—and 500,000 ETH deposited. Initially, community members were seemingly reluctant to lock up their coins; the minimum threshold was crossed almost at the last moment before the deadline.
Since then, however, inflows of ETH into the Ethereum 2.0 deposit contract have grown considerably. By December 4 last year, users had locked up a total of one million ETH in the 2.0 contract—twice that required for the beacon chain’s launch. That figure doubled again just 20 days later, reaching two million ETH on December 24.
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